Kalyan Jewellers witnessed revenue growth of ~34% for our India operations during the recently concluded quarter as compared to Q1 FY 2023.
Strong operating momentum has been consistent and sustained through the entire quarter, including during Akshaya Tritiya, underpinning the resilience of our category within the overall consumption basket and demonstrating strong execution in the market by our operating team on the ground.
While momentum in same store revenue growth was broad-based across geographies, non-south markets recorded higher overall revenue growth largely due to the greater number of showrooms launched in that region over the last twelve months. Gross margin at the showroom level has improved as compared to the same period in the previous financial year and has remained broadly in line with the prior quarter. As expected, given the higher share of revenue from franchised showrooms, blended gross margin has declined sequentially as well as when compared to the same period in the previous financial year.
Kalyan Jewellers added 12 new ‘Kalyan’ showrooms across non-south markets during the recently concluded quarter and expect to launch ~20 new showrooms across non-south markets before Diwali, as part of previously communicated plan of launching 52 new showrooms during the current year.
In the Middle East,Kalyan Jewellers continued to witness robust momentum in footfalls and revenue driven by strong economic activity in the region. Revenue growth for the recently concluded quarter was ~21%. The growth in the recently concluded quarter was predominantly same-store-sales driven since network expansion in the region during the last twelve months has not been meaningful.
Eid holidays-driven sales, which was not part of the base quarter revenue in the prior year, also contributed to the higher than usual same-store-sales growth during the recently concluded quarter.
Kalyan Jewellers expect to launch the first FOCO (Franchisee Owned Company Operated) showroom in the region during Q2 FY 2024.